• The broad measure of business inflation – the producer price index (PPI) – rose by 1.3 per cent in the September quarter, well ahead of expectations for an increase of 0.5 per cent. Compared with a year ago, producer prices were up by 2.2 per cent.
• Inflation was narrowly based, and largely driven by price increases for utilities (electricity, gas, water) and building costs. Excluding utilities and building costs, prices rose just 0.4 per cent in the September quarter.
• According to the Australian Institute of Petroleum the national average retail pump price rose 0.3 cents a litre last week to 123.9 cents a litre – a two month high.
• Over the next fortnight CommSec expects pump prices to trend sideways as the strengthening Australian dollar largely negates any increase in regional oil prices.

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